Edison and BG To Export Gas from West Delta Deep Marine Concession
Egypt signed an agreement with BG Group and Edison, allowing the two companies to export natural gas from the West Delta Deep Marine concession. Oil Minister Sameh Fahmi also signed with BG Group, Edison and Shell an agreement to amend the price that EGPC pays them from gas produced from their Rosetta concession as well as the West Delta Deep Marine concession.
The new natural gas price system, which took effect in July 2001, is based on the Brent blend of crude oil, but has a minimum price of $1.50 a million British thermal units if Brent is less than $10 a barrel and a maximum of $2.65 a million BTU if Brent is $20/bbl or above.
Most foreign gas companies in Egypt have already informally adopted this new price formula, but this week's signing was a formal ratification, a BG official said.
The first exports from the West Delta Deep Marine concession are headed to France in mid-2005 after they are processed at a liquefied natural gas plant being built by a consortium comprised of Egyptian General Petroleum Corporation, the Egyptian Natural Gas Holding Company, BG Group, Edison and Gaz de France.